Joe Manchin's break on FERC nominee could sink Obama’s pick

His surprise decision is the latest twist in power struggle over the chairmanship. | AP Photo

Sen. Lisa Murkowski of Alaska, the top Republican on the energy committee and a moderate on many issues, announced her opposition to Binz during his Tuesday morning confirmation hearing. Meanwhile, Sen. Dean Heller (R-Nev.), another member of the energy committee, said Wednesday that he would also vote against Binz.

Reaction to Manchin’s move among Binz supporters elicited more sadness than shock.

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“In this political environment, where special interests trump public interests every day, no, I guess I’m not surprised,” former FERC Commissioner Nora Mead Brownell, a Republican, told POLITICO. “I’m sad because it isn’t a good thing, whether you like Binz or not.

“It’s all in that theme of gotcha politics,” she added.

Earlier this summer, Brownell organized 11 other former FERC commissioners to publicly defend Binz and the agency against the criticism on the editorial page of The Wall Street Journal.

Adding to the drama around the nomination was a report last week in a power industry publication, TransmissionHub, that Senate Majority Leader Harry Reid squelched the chances for another potential nominee for FERC chairman who the majority leader believed was “too pro-coal.”

The politically charged atmosphere around Binz’s nomination may have broader implications for the energy companies that have a financial stake in FERC remaining nonpartisan, Brownell said. FERC, an independent regulator, has jurisdiction over much of the backbone of the energy world, including interstate electric transmission and natural gas pipelines.

“I’m disappointed that Sen. Manchin is standing in the way of a fully functioning FERC, making it harder for the commission to meet its central mandate of protecting consumers and ensuring fair competition in energy markets,” said Richard Caperton, managing director of energy programs at the liberal Center for American Progress.

“Yesterday’s hearing showed that Binz is completely qualified to chair FERC and is committed to treating all energy sources fairly,” he said.

When Manchin spoke near the end Binz’s hearing, he said that the Obama administration’s energy policies were beating the “living crap” out of West Virginia and that he was “skeptical” of Binz but had not yet committed to a position on his nomination.

Outgoing FERC Chairman Jon Wellinghoff’s term expired this June, but commission members are allowed to stay in place until the end of the congressional session. That would be sometime in December. If Wellinghoff slips off the commission before a replacement is confirmed, FERC Commissioner Cheryl LaFleur is the most likely candidate to be named agency chairwoman, at least temporarily.

The tension over Binz had already reached a level not seen for a FERC nomination before Binz testified Tuesday: the involvement of conservative groups, a PR firm hired by environmentalists to push Binz’s nomination through the Senate, and the alleged heavy-handed involvement of Reid early in the process.

What remains to be seen is whether a White House that has already had to fight tooth and nail for other second-term nominees, such as Chuck Hagel at the Pentagon and Gina McCarthy at EPA, can — or wants to — push hard for a spot at an obscure independent regulator.